Post Utme Summit University 2017 Commerce Question 28

Practice objective / multiple choice question 28 from the 2017 Post Utme Summit University Commerce examination.

Post Utme Summit University 2017 Commerce Objective / Multiple Choice
Question 28 POST_UTME_SUMMIT_UNIVERSITY • 2017 • COMMERCE • objective

A company's memorandum of association may provide for the issue of preference shares. What are the characteristics of preference shares?

Answer Options

Correct Answer A. Preference shares have a fixed dividend rate.
B. Preference shares have a variable dividend rate.
C. Preference shares have a higher claim on assets than ordinary shares.
D. Preference shares have a lower claim on assets than ordinary shares.
Correct Answer
A
Correct Option:
Preference shares have a fixed dividend rate.

About This Question

This is Post Utme Summit University 2017 Commerce Question 28. It is one of the objective questions from the 2017 Post Utme Summit University Commerce examination.

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